Governments can reduce the problem of moral hazard by:
A)requiring licences be obtained before starting a business.
B)prosecuting fraud and malfeasance.
C)keeping interest rates low.
D)reducing corporate income tax rates.

Question

Quizplus · Accepted Answer

Prosecuting fraud and malfeasance directly addresses moral hazard by holding individuals and companies accountable for their actions, thereby discouraging risky or unethical behavior.

Governments Can Reduce the Problem of Moral Hazard By